Can You Trade In a Financed Car?

Learn More About Trading In a Financed Car

Are you asking yourself, “Can I trade in a financed car?” You’ll be happy to know that the answer is absolutely. Financed cars are traded all the time at Weir Canyon Acura, and our finance team is adept at helping our Costa Mesa and Tustin customers through the process. So how does trading in a financed car work? Keep reading to learn more about your options for trading in a financed car with our Anaheim-based team. As always, you can contact us with any questions you have about your auto loan, interest rates, and more.

How Does Trading In a Financed Car Work?

1. Determine the remaining balance on your loan. It is typically listed on your monthly statement.
2. Use our Value Your Trade tool or one from a service like Kelley Blue Book to get an estimate on the value of your current vehicle. Note that this is simply an estimate, and it’s only once the vehicle has been physically inspected that the dealership will establish what the car is worth. 
3. If the remaining amount of your auto loan is less than the trade-in offer from the dealership, then you’ll have money left over that will go toward purchasing a new car from the dealer. 
1. For example, if you still owe $7,000 on your car in Tustin, and the dealer offers you $8,000 to buy the car, the loan can be paid off and you’ll have $1,000 to contribute toward your next car. 
4. If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still owe money on your car—this is called negative equity. You can pay off the remainder in full before buying your next car, or you may have the option to roll over the balance into your next auto loan with the dealer.

If you still have questions about how trading in a financed car works, give us a call at (714) 777-3300 any time to ask our experts.

What Does “Rolling Over” a Loan Mean?

Rolling over a loan is when a dealership says they will pay off your old loan no matter how much you owe. However, this is too good to be true, as the price gets added to your new loan on the next car you buy, meaning you pay the dealership back for the old loan at the same time that you pay off the loan on your new vehicle.

Trading in a Car with Negative Equity

Even if you have negative equity, you might be wondering if you still have the option to trade in your car that’s not paid off. These might be some good options to consider: 

• Make up the difference you still owe after accounting for the trade-in price. This is the first option you should consider since it can easily turn your situation for the better. While not everyone will have enough spare cash to do this, it will work in your favor if you do.
• Another option is to transfer the amount you still owe over to a new loan. Most people choose this option when they have negative equity and want to trade in their current vehicle that’s not paid off. However, transferring the amount to your new loan can increase the monthly payment and in the end, you will still be paying for a car that you traded in. In other words, this will make you upside-down in your new loan. If you can’t keep up with your current car payments and you are downsizing with a cheaper car, this could be the best option for you.

Rely on Weir Canyon Acura for Your Next Vehicle

Ready to trade in your financed car for a lease or purchase of a new model? Get behind the wheel of your next Acura with the team at Weir Canyon Acura. Be sure to explore our new vehicle specials, and explore our car buying tips and apply for financing online to prepare for your next purchase near Montclair.